Gerald, an Agent, Who Makes a Contract with Adele on Behalf

question 71

True/False

Gerald, an agent, who makes a contract with Adele on behalf of Leon, an unidentified principal, may maintain in Gerald's own name a breach of contract action against Adele.

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Definitions:

Stockholders' Equity

The residual assets of a company that belong to the shareholders, calculated as total assets minus total liabilities.

Liabilities

Financial obligations or debts that a company owes to others, reflecting amounts that must be paid in the future.

Authorized Shares

The maximum number of shares a corporation is legally allowed to issue, as stipulated in its articles of incorporation.

Treasury Stock

Shares that were issued and later reacquired by the issuing company, reducing the amount of outstanding stock on the open market.